As agency owners, it can be distressing to learn of an impending carrier appointment termination. You may feel as though you have failed, especially after all the work you put in to gain the appointment. However, this is simply a business decision. Carriers routinely run the numbers to see if any of their producers, books of business, states, or regions are costing the company more than they are bringing in. If so, the company may begin the process of making risk changes including the possible termination of the producer’s contract.
You have no doubt done your best to secure business on behalf of the carrier. Still, now it’s time to move beyond this mindset and determine how to best protect your own bottom line with respect to this carrier.
Sell Your Agency or Book of Business
You can choose to sell either that specific carrier’s book of business or your entire agency to an interested party. Springtree Group’s pool of motivated buyers may decide to purchase a book of business despite the current precarious position if they believe they will have better success. Due to their experience, connections, and locations, they may be better situated to draw profitable clients to this book.
Alternatively, you may choose to sell your agency outright. It may be time for you to retire, or you might be ready to transition to another vocation. Either way, Springtree Group has the expertise and connections to find a buyer who is ideally suited to acquire your agency.
Why Springtree Group?
We are a specialized M&A firm that only works in the private independent insurance sector. We are uniquely qualified to assist both buyers and sellers in your industry through our in-depth understanding of the unusual financing requirements and processes involved in each transaction.
In fact, we have our own financing organizations. Traditional financing avenues are often closed to buyers in the insurance sector because our deals don’t look like other business deals. Therefore, Springtree Group conducts our own research into each potential buyer and appoints financing options in accordance with their means.
As a result, the buyer that we manage toward the purchase of your agency will be prepared to purchase it. You won’t lose time chasing deals that are doomed to fall through due to failed financing, even though this is typically the single most common reason for an insurance M&A transaction to collapse.
The Takeaway
Whether or not your carrier appointment is terminated is outside of your control. What happens between now and then is not. Contact Springtree Group immediately if you have suspect that your appointment is scheduled for termination. We will conduct a rapid analysis of your situation and offer our recommendations for your next steps.
Above all, we want you to keep your focus on your own financial well-being. Our goal is for you to exit either your relationship with this carrier or your role as an agency owner prepared for your future goals.
Springtree Group’s contacts throughout the United States and beyond our borders, deep insight into the insurance industry, and understanding of the intricacies of the financial landscape you face makes us uniquely situated to help you successfully navigate this situation. We look forward to working with you.
